Taking a stake in an IFA company

depolarisation

Life offices buying into IFA firms benefit from improved distribution and in some cases a profitable investment, while intermediaries can benefit from a fresh source of financial and technical support, writes Leonora Walters

A number of life assurers have bought stakes in IFA firms over the past few years, primarily in an attempt to control and influence distribution. In some cases where they have taken complete control of an IFA firm, the motivation has also been to make a profitable investment. Ensuring good distribution is particularly important for firms that largely or solely rely on intermediaries to sell their products. An example of this is Skandia, which has only ever distributed its products through advisers. However, Skandia only started buying stakes in such firms three years ago, when it bough...